Independent contractors (ICs) and gig workers in the transportation and logistics industry are entrepreneurial-minded people who typically start as single owner-operators. As they establish themselves with delivery companies, they often seize the opportunity to grow their independent business and become a master contractor by recruiting a few subcontractors to run routes underneath them.
Are subcontracted workers creating compliance risk?
In a perfect world, subcontractors are appropriately vetted and insured. However, given the urgency of delivery work, it is not uncommon for master contractors to bring in family members and friends to run these routes on an ad hoc basis. Without proper compliance protocols (or ignoring compliance completely), the transportation company and the master’s business are at significant risk of being held liable for anything that happens while a subcontractor is on dispatch.
For this reason, transportation companies are highly encouraged to enroll subcontractors into a contractor management platform, such as Openforce. Doing so mitigates compliance risk through the ability to screen critical compliance documents that otherwise often go undetected.
Why automating subcontractor compliance matters
Manually managing subcontractor compliance is time-consuming and error-prone. Openforce streamlines processes by allowing businesses to:
- Automate manual processes. Eliminate error-prone spreadsheets and messy file cabinets, increase in-house productivity and automate subcontractor processes.
- Enroll subcontractors quickly. Customized workflows capture precisely what you need. Your team can send invitations, or Masters can invite subs anytime from any device.
- Improve subcontractor compliance. Access critical screens and compliance documents, plus we’ll send you automated expiration alerts.
- Mitigate compliance risk. Rest easy knowing subcontractors are fully qualified and compliant, not just Masters.
- Reduce insurance liability. Masters pay the appropriate insurance premiums for how many subs they have, increasing your protection against anything that happens while subs are on dispatch.
- Attract and retain talent. Help your masters attract and retain top talent by providing subs access to the Openforce benefits portal featuring the same money-saving perks and benefits they enjoy.
Don’t take unnecessary risks. Contact Openforce today to learn how enrolling subcontractors helps ensure compliance and automates manual tasks so you can rest easy.
Openforce is the leader in technology-driven services that reduce operating costs and mitigate risk for companies using independent contractors. Our cloud-based applications help companies and contractors alike achieve more sustainable, profitable growth by removing financial, operational, and compliance barriers to getting business done.